Philippines needs AML reform on casino biz: IMF

Anti Money Laundering Act Of 2020
Anti Money Laundering Act 2021
Anti Money Laundering Act Philippines Casino Code

May 28, 2020 an act amending republic act no. 9160, otherwise known as the “anti-money laundering act of 2001” Be it enacted by the Senate and House of Representative of the Philippines in Congress assembled: SECTION 1. Pursuant to Section 18 of Republic Act No. 9160, as amended by Section 5 of Republic Act No. 10927, otherwise known as “An Act Designating Casinos as Covered Persons under Republic Act No. 9160, otherwise Known as The Anti-Money Laundering Act of 2001, as amended”, the Anti-Money Laundering Council (AMLC), Philippine Amusement and Gaming Corporation (PAGCOR), Cagayan Economic Zone Authority (CEZA), and Aurora Pacific Economic Zone and Freeport Authority (APECO) hereby jointly adopt. MARCOS’ PROPOSALS: Sen. Imee Marcos announces several proposals contained in the bill she has filed, Senate Bill No. 1545 seeking to amend Republic Act No. 9160, otherwise known as the Anti.

The Philippine Anti-Money Laundering Council implemented the Republic Act No. 10927 on November 4 th, 2017. Republic Act No. 10927 is a Philippine gambling law that plugs holes left by previous legislation and enforces heavy regulations on all gambling operators.

The Philippines will need to make further reforms to enhance its anti-money laundering (AML) and combatting the financing of terrorism (CFT) measures in relation to the country’s casino industry, says a report from the International Monetary Fund (IMF).

The fund said in a Friday press release that its executive board had reached the conclusion as part of its “Financial System Stability Assessment” of the country.

Referring to the country’s casino regulator, the Philippine Amusement and Gaming Corp (Pagcor), the report stated: “Pagcor should effectively apply risk mitigation and risk-based supervision measures (i.e., targeting casino junket operators).”

The document added, referring to the fact some casinos in the Philippines are in the public sector and under the umbrella of Pagcor: “The authorities should resolve Pagcor’s conflict of interest from its responsibilities for operating casinos and AML/CFT supervision.”

The IMF report said additionally the Philippines should strengthen “risk-based” AML/CFT supervision “including sanctioning procedures” for high-risk sectors, such as “banks, casinos, and money-value transfer service providers”.

The document also noted that the country currently faced “medium” risk to its reputation in terms of the financial sector.

The IMF suggested international confidence “could diminish from insufficient supervision and monitoring of casinos, the gaming industry, and cryptocurrency exchanges, which could be abused for financial crimes”.

Additionally, the fund said the Philippines’ “strict bank secrecy laws” limited financial supervisors’ access to individual depositors, and could “encourage criminals to misuse Philippine banks for fraud, money laundering, terrorism financing, and other financial crimes”.

Without further reform, reputational risk could “pressure” relationships with correspondent banks in other places, and “limit Philippine banks’ access to global markets, and affect the flow of international remittances, resulting in depreciation pressure on the Philippine peso,” stated the IMF.

In January, the Philippine Senate and the House of Representatives respectively approved amendments to the country’s Anti- Money Laundering Act, known as the AMLA, adding Philippine Offshore Gaming Operators (POGOs) and their “service providers” as “covered persons” under the legislation.

The lower house’s speaker was cited as saying the move would “help the Philippines avoid being included in the grey list of the FATF-International Cooperation Review Group”.

That was a reference to the France-based Financial Action Task Force, a body that advises countries across the world, on how to improve anti-money laundering procedures.

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Republic Act 10927 (Anti-Money Laundering Act of 2001, as amended)

Aligned with the national policy of preventing the country from being used as money laundering and terrorist financing (ML/TF) site, the government has expanded anti-money laundering laws to cover casinos, including internet and ship-based casinos.

Anti Money Laundering Act Of 2020

To implement the inclusion of casinos under the coverage of the Anti-Money Laundering Act (AMLA), the Anti-Money Laundering Council (AMLC) together with PAGCOR and other Appropriate Government Agencies (AGA) jointly promulgated the Casino Implementing Rules and Regulations (CIRR) of RA No. 10927.

PAGCOR ANTI-MONEY LAUNDERING SUPERVISION AND ENFORCEMENT DEPARTMENT (PASED)

Following the government's fight against ML/TF, the Philippine Amusement and Gaming Corporation (PAGCOR) created PAGCOR Anti-Money Laundering Supervision and Enforcement Department (PASED) to set out and enforce effective Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) framework in the casino industry which comprises a wide range of supervisory actions that include preventive measures, related sanctions and other remedial actions that PASED can apply.

Currently, the three (3) main areas of PASED's effort to protect the integrity of the casino industry against ML/TF are as follows:

1. Policy Development, Implementation and Review – Undertake research and analysis to develop policies and plans in consultation/coordination with the AMLC, other local and international counterparts and casino operators.

Anti Money Laundering Act 2021

2. Casino Industry AML/CFT Risk Assessment – Designed to assist casino operators in carrying out their institutional ML/TF risk assessment.

Anti Money Laundering Act Philippines Casino Code

3. On-site Inspection and Off-site Examination – On-site inspections are conducted to ascertain that casino operators are compliant with the AML/CFT framework. Off-site examination entails reviewing and analysing ML/TF Prevention Program (MTPP) and other pertinent reports submitted by the casino operators.